2024- The Bahamas Innovative Nature Bonds project

In a pioneering move, The Bahamas, in collaboration with The Nature Conservancy (TNC), the Inter-American Development Bank (IDB), and a coalition of financial partners, launched an innovative Nature Bonds project on November 21, 2024. This groundbreaking initiative refinances $300 million of the nation's external commercial debt, without adding to its overall debt burden.

This landmark project is set to unlock an estimated $124 million in new funding (plus an additional $8 million in endowment returns) over 15 years for marine conservation and climate resilience. These funds will be channeled into The Bahamas Protected Areas Fund, bolstering the effective management of its vast Marine Protected Areas (MPAs)—already exceeding 17% of its nearshore environment.

The Bahamas project introduces several "firsts": it's the first time a private investor (Builders Vision) provides a co-guarantee alongside a multilateral development bank, and the first to include a private insurer (AXA XL) in such a credit enhancement package. Critically, it also explicitly incorporates climate-smart MPA commitments to drive both climate mitigation and adaptation goals.

This fifth Nature Bonds project by TNC, following successful initiatives in Seychelles, Belize, Barbados, and Gabon, solidifies this approach as a powerful, scalable solution. By integrating debt refinancing with science and policy, The Bahamas is poised to strengthen its leadership in ocean stewardship, safeguard livelihoods, boost its blue economy, and contribute significantly to global ocean protection goals.